The IRS has announced lower interest rates effective from 1 April 2026, reducing both overpayment and underpayment rates for corporations across multiple categories.

RF Report

The US Internal Revenue Service (IRS) has confirmed that interest rates for the second quarter dropped beginning 1 April 2026.

According to the Revenue Ruling 2026-5, the IRS has set out revised interest rates that will apply for the April–June 2026 quarter, reflecting a downward adjustment across several categories.

For corporations, the updated rates are as follows:

  • Overpayments: 6% (previously 7%)
  • Corporate overpayments: 5% (previously 6%)
  • Underpayments: 6% (previously 7%)
  • Large corporate underpayments: 8% (previously 9%)
  • Corporate overpayments on amounts exceeding USD 10,000: 3.5% (previously 4.5%)